Trinity Mirror slumps on doubling of cost cuts and revenue warning

Trinity Mirror dropped nearly 4% on Friday after the company said it has doubled its targeted structural cost savings for the year to £20m due to a more challenging revenue environment.

“This coupled with ongoing cost mitigation actions and continued investment to drive digital audience and revenue will help underpin profits,” said Trinity.

In March, the company, which published titles including the Daily Mirror and the Sunday Mirror, had announced a cost savings target of £10m. The increased targeted cost savings will result in restructuring costs increasing by some £5m to £15m.

In its pre-close trading update ahead of interim results on 3 August, Trinity said that revenue during the 28 weeks to 28 June is expected to fall by 11% year-on-year, with underlying revenue falling by 9%.

On an underlying basis, publishing revenue is expected to fall by 9%, with print declining by 11% and digital growing by 26%.

The company also said that its subsidiary, MGN Ltd, was seeking permission to appeal against a court ruling ordering it to pay a total of £1.2m in damages to phone-hacking victims.